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S.KrishnakumarvsStateOfon11August,2009
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CentralAdministrativeTribunalErnakulam
CENTRALADMINISTRATIVETRIBUNAL
OriginalApplicationNo.719of2008
TransferApplicationNo.6of2008
Tuesday,thisthe11thdayofAugust,2009
ERNAKULAMBENCH
with
with
CORAM:
HON'BLEDr.K.B.S.RAJAN,JUDICIALMEMBER
HON'BLEMr.K.GEORGEJOSEPH,ADMINISTRATIVEMEMBER
1.
OriginalApplicationNo.719of2008
1.
S.Krishnakumar,
AccountsClerkcumTypist,
NehruYuvaKendra,
CivilStation,Pathanamthitta
2.
T.K.Manoharan,
NehruYuvaKendra,
CivilStation,Palakkad
3.
D.Padmakumari,
NehruYuvaKendra,
S.N.CollegeJunction,Kollam
4.
N.Karpakam,
NehruYuvaKendra,
ChakalakalApartments,
NearHarithagiri,
KalpetaP.O.,Wayanad
5.
P.Asmabi,
NehruYuvaKendra,
http://indiankanoon.org/doc/63153119/?type=print
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CivilStation,Malappuram
6.
T.M.Annamma,
NehruYuvaKendra,
CivilStation,Kasargod
7.
M.M.Beena,
NehruYuvaKendra,
PressClubRoad,Trivandrum
8.
A.V.Molly,
YouthCoOrdinatorincharge,
NehruYuvaKendra,CivilStation,
Kakkanad,Cochin
682030
9.
M.K.Valsala,
NehruYuvaKendra,
AyyantholeP.O.,Trichur.
10.
M.C.Jayasree,
NehruYuvaKendra,
TalapP.O.,Kannur.
11.
P.Jayaprakashan,
NehruYuvaKendra,
CivilStation,Kozhikode
12.
P.N.Vijayakumar,
NehruYuvaKendra,
MunicipalBuilding,Thodupuzha .....
2.
1.
A.V.Molly,
NehruYuvaKendra,CivilStation,
Kakkanad,Cochin
682030
2.
K.Devaraj,
NehruYuvaKendra,KavarathiP.O.,
U.T.OfLakshadweep
3.
M.K.Valsala,
Applicants.
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NehruYuvaKendra,
AyyantholeP.O.,Trichur.
4.
M.C.Jayasree,
NehruYuvaKendra,
TalapP.O.,Kannur.
5.
P.Jayaprakashan,
NehruYuvaKendra,
CivilStation,Malapuram
6.
P.N.Vijayakumar,
NehruYuvaKendra,
MunicipalBuilding,Thodupuzha .....
3.
1.
S.Krishnakumar,
NehruYuvaKendra,
CivilStation,Pathanamthitta
2.
T.K.Manoharan,
NehruYuvaKendra,
CivilStation,Palakkad
3.
D.Padmakumari,
NehruYuvaKendra,
S.N.CollegeJunction,Kollam
4.
N.Karpakam,
NehruYuvaKendra,
ChakalakalApartments,
NearHarithagiri,
KalpetaP.O.,Wayanad
5.
P.Asmabi,
NehruYuvaKendra,
CivilStation,Kozhikode
6.
T.M.Annamma,
NehruYuvaKendra,
Applicants.
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CivilStation,Kasargode
7.
M.M.Beena,
NehruYuvaKendra,
CivilStation,Alapuzha
...
Applicants.
(ByAdvocateMr.CSGNairinallO.As)
versus
1.
UnionofIndiarepresentedbyits
Secretary,
DepartmentofYouthAffairsandSports,
ShastriBhavan,NewDelhi
2.
TheDirectorGeneral,
NehruYuvaKendraSangathan,
EastPlaza,IndiaGandhiIndoorStadium,
NewDelhi110002
3.
ThePayandAccountsOfficer,
No.33,16thMain,5thBCrossRoad,
MetropolitanHousingSociety,
B.T.M.Layout,Bangalore560076
4.
TheZonalDirector,
PressClubRoad,Trivandrum
1...RespondentsinallOAs.
(ByAdvocateMr.TPMIbrahimKhan,SCGSCinTANos.6/08and7/08
andMr.S.Abhilash,ACGSCinOANo.719/08))
Theseapplicationshavingbeenheardon28.07.2009,theTribunalon
11.08.09deliveredthefollowing:
ORDER
HON'BLE Dr.K.B.S.RAJAN, JUDICIAL MEMBER TA 6/08, TA 7/08 and OA 719/08 are dealt
withtogetherasthelegalissueinvolvedinthesecasesisoneandthesame.Forthepurposeof
havingabirdeyeviewofthefactsofthecase,thesameisgivenseparately,while,forthepurpose
ofoverallconsideration,OA719/08istakenasthepilotcase.
2.Facts in OA No. 719/08: The Nehru Yuva Kendra Sangathan (NYKS for short), a Registered
SocietyfunctioningundertheMinistryofHumanResourcesDevelopmentundertheDepartment
ofYouthAffairsandSportsin1987andisanauthorityunderArt.12oftheConstitutionofIndia.
Applicants 8 to 12 in this OA are employees who joined the Educational and Social Welfare
department prior to formation of the Sangathan and absorbed in the Sangathan on its
constitutionwhileapplicantsNo.1to7arepostSangathanEmployees,havingbeenrecruitedon
orafter01041987.AllhavejoinedasAccountsClerkcumTypists.Whilemanycontinueinthe
samepost,somearefunctioningasYouthCoordinator.VideAnnexureA1,the2ndRespondent
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issued office order dated 04091996 followed by Annexure A2 order dated 18th September,
1996totheeffectthatinpursuanceofajudgmentoftheApexCourt,preSangathanEmployees
whojoinedasAccountsClerkcumTypistsondeputationbasisinvariousStateGovernmentsare
absorbedintheSangathanw.e.f.01041987andtheirpayfixedinthepayscaleofRs12002040
andthepayandallowancesoftheseemployeesshallbegovernedbytherulesandregulationsof
Govt.ofIndiaasadmissiblefromtimetotime.BasedontheAnnexureA4orderdated14thMay
1998ofMinistryofHumanResourcesDevelopmentthe2ndRespondenthadissuedAnnexureA
3 order dated 20th May 1998, whereby, the recommendations of the Central Fifth Pay
CommissionwereextendedtotheemployeesoftheNYKSsubjecttothefollowingconditions:
"1.Asthebenefitoftherevisedscaleisbeingmadeavailablew.e.f.14thofMay1998,for fixing
the pay of post Sangathan employees in the revised regular scales of pay, while their basic pay
and dearness allowance is taken into account, 40% fitment benefit will not be admissible.
Howeverthebenefitofoneincrementforeverythreeincrementsintheprerevisedscaleswillbe
given.
2.Nopensionschemewill,however,beintroducedforpostSangathanemployees.
TheywillcontinuetobegovernedbytheGovernmentEPFschemeasatpresent.
3. The revised scale of pay as incorporated in Part 'A' of the First Schedule of the Central Civil
Service(revisedpay)Rules,1997shallonlybeadmissible.
4. The emoluments' structure and conditions of service will be exactly similar to those of the
correspondingcategoriesoftheCentralGovernmentemployees.ServicerulesofNYKS,therefore,
stand modified to ensure that the conditions of service are exactly similar to those of Central
Governmentemployees."
3. Vide Annexure A6 Order No. 001/ACP/ACT dated 3rd January, 2003, the Accounts Clerk
cumTypistsoftherespondents'organizationhavebeenaffordedthefollowingACPBenefits:
1stFinancialupgradationaftercompletionof12years:FromRs.4000
6000toRs5500
9000
2ndFinancialupgradationaftercompletionof24years:FromRs.5500
9000toRs6500
10500
4. While as many as 26 were the beneficiaries under the above orders, 106 more were the
beneficiariestotheextentoffirstfinancialupgradation asabove, by order dated 7th July 2003
(AnnexureA7).
5. The case of the applicants is that at the time when the scheme of ACP is introduced, the
hierarchicalstructureaboveAccountscumTypistClerkswasAccountant(Rs5,5009000)and
Accounts officer (Rs 7450 11500) and it was not known as to how the second financial
upgradationwasfixedatthescaleofRs650010500/insteadofRs745011500/.
6.ItappearsthattheMinistryofYouthAffairsandSports,underwhichtheNYKSfunctions,has
issued certain orders dated 19th May 2008 relating to the extent of financial benefits available
undertheACPSchemeascouldbeobservedfromAnnexureA9orderdated4thJune2008.And
on telephonic instructions from the said Ministry, the NYKS has issued order dated 4th June
2008, whereby the financial upgradations granted vide Annexure A6 and A7 orders were all
withdrawnandtheupgradationswererevisedtoasunder:
1stFinancialupgradationaftercompletionof12years:FromRs.4000
6000toRs4500
7000.
2ndFinancialupgradationaftercompletionof24years:FromRs.4500
7000toRs5500
9000
7. Recovery of the excess amount paid was also ordered to be made in monthly instalments,
commencingfromthemonthofJune2008.
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8.VideAnnexureA11andA12,theGovernmenthaveextendedtherevisedpayRules2008to
theNYKSandinturn,theNYKShasissuedO.M.Dated29thOctober2008withregardtogrant
ofpayaspertherecommendationsoftheVIPayCommissiontotheemployeesofNYKSwhich
hasthefollowingstipulations:
"(a)SixthPayCommissionrecommendationsmaybeallowedtoonlythoseemployeeswhohave
giventheiroptionandundertakingintheformatattachedasAnnexureIIAandIIBrespectively.
(b)ConcernedZDswillcollectoptionsfromfieldofficials/staffandZonalofficesandsendthem
toconcernedPAOs.
(c) Any employee whose option and undertaking is not received will continue to drawsalaryin
prerevisedscalewithrevisedDAof54%w.e.f.01.07.2008ascommunicatedseparately.
(d)All Officers & staff posted at Headquarters will give their option and undertaking to the Jr.
AccountsOfficer,AccountsSection.
(e) In case of employees who have been allowed any financial benefit through ACP
scheme/upgradationofscaleetc.,basicsalaryason01.01.1996(thedateofimplementationofthe
FifthPayCommissionReport)maybeconsideredandregularannualincrementmaybegivenin
thescaleuptothedateofstagnation.Afterstagnation,oneincrementforeverytwoyearsmaybe
given till 1st January, 2006. Accordingly replacement scale of Sixth Pay Commission may be
allowedagainstthebasicsalaryofanemployeeason01.01.2006.
(f) Each order of pay fixation by NYKS in respect of each staff member shall carry following
clause:
"TheabovefixationofpayissubjecttopostauditandanyotherexaminationbytheGovernment
ofIndiaintermsofrules/regulationsgoverningpay/allowancestosuchcategoriesofemployees
oftheCentralGovernment.Inlightoftheaboveexaminationanyexcesspaymentmadeinarrears
orotherwisewouldberecoveredwithoutanynotice"."
9.Orderdated4thJune2008videAnnexureA9hasbeenchallengedinvariousHighCourtsand
stayhasbeengranted.Hence,videAnnexureA15orderdated30thOctober2008,theNYKShas
issuedthefollowingorder:
"InviewofthestayorderofvariousHon'bleHighCourtsonimplementationoforderNo.NYKS
videwhichACPbenefitswerecancelledwithretrospectiveeffect,ithasbeendecidedtomaintain
thestatusquoinregardtomonthlypayandAllowancesoftheseemployees.SuchAccountsclerk
cumTypistwillcontinuetodrawtheirpay&AllowancesaspertherecommendationsofVthPay
Commissionuntilfurtherorder."
10.Applicantshavechallengedpara2(e)ofAnnexureA10andAnnexureA15orderandclaim
parity with all other Central Government employees in matter of ACP including date of
implementationoftheorder,andsoughtinteraliathefollowingrelief(s):
(a)TocallfortherecordsleadinguptotheissueofAnnexureA15,thecondition(e)inpara2of
AnnexureA10andquashthesame.
(b) To direct the respondents to grant the benefits of CCS (RP) Rules 1997 with effect from
1.1.1996 with all consequential benefits taking into consideration the ACP benefits already
granted.
(c)TodirecttherespondentstogranttheRevisedPayScalestoalltheapplicantswitheffectfrom
1.1.2006 on the basis of CCS (Revised Pay) Rules 2008 and grant all consequential benefits
withinastipulatedperiod.
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(d)Todirecttherespondentstopaythearrearsofpayandallowancesonaccountoftherevision
ofpayscalestoalltheapplicantsinthesamemannerasgrantedtoalltheCentralGovernment
employees.
11.RespondentshavecontestedtheOA.TheyhaveannexedAnnexureR1orderdated14thMay
1998, which pertains to the Post Sangathan employees (while Annexure A4 filed by the
applicants relates to pre Sangathan employees). As regards hierarchy in the line of Accounts
clerks cum typists, the respondents have stated that above the said post, as early as on 1008
1993 a post of Junior Accountant was approved by the Board of Governors which had to get
assent from the Ministry of Finance and the same has been granted in 2007 with retrospective
effect. Thus, even prior to 2007 the post of Junior Accountant did exist. With reference to the
dateofimplementationofACPscheme,therespondentshavecontendedthatthesameisw.e.f.
16052001inaccordancewiththeapprovalaccordedbytheB.O.G.
12.Facts in TA No. 6/08: All the petitioners in TA 6/08 are pre Sangathan employees having
beenabsorbedintheSangathanw.e.f.01041987.WhilepetitionersNo.1to4arefunctioningas
YouthCoordinators,petitionersNo.5and6arefunctioningasAccountsClerkcumTypists.They
havechallengedExhibitP5orderdated4thJune2008(AnnexureA9inOANo.719/08)and
theHighCourthasalreadygrantedstay.Prayerinthewritpetitionistotheeffectthatthesaid
impugnedorderdated4thJune2008bequashedbyissuanceofawritofcertiorarioranyother
writorderordirectionand to issue a writ of mandamus or any other appropriate writ order or
direction prohibiting the respondents from refixing the pay in the reduced scale and effecting
recoveryofpayallegedtohavebeenpaidinexcess.
13.RespondentshavefiledtheirreplystatingthatthehierarchyconsistedofpayscaleofRs4000
6000followedbyRs45007000and55009000andduetocertainreasonstheaforesaidsystem
ofnextgradeofhierarchywasnotfollowedatthetimeofgrantofACPtothepetitioners,which
was,attheinstanceoftheMinistry,cancelledvideorderdated4thJune2008.
14.FactsinTANo.7/08:AllthepetitionersinthisTAarepostSangathanemployeesandtheir
grievanceisalsoastotheissueoforderdated4thJune2008andthereliefsoughtforbythemis
identicaltothosesoughtforbythepetitionersinTA6/08.
15.CounselfortheapplicantarguedthatthetermsandconditionsasapplicabletoalltheCentral
Government employees were to apply to preSangathan employees as per annexure A 1 order
dated4thSeptember1996andbysubsequentorders,thepreandpostsangathanemployeeshave
alsobeenequated.Assuch,thereisnodifferencebetweenthecentralgovernmentemployeeson
the one hand and their counterparts of the Sangathan on the other. Hence, all the benefits
availabletotheCentralGovernmentEmployeeshavetopercolatetotheapplicantsworkinginthe
Sangathan.Asregardshierarchy,thecounselfortheapplicantsubmittedthatinthepast,there
hadbeennopostofJuniorAccountantandthefirsthigherpostaboveAccountsclerkcumTypist
wasAccountantwiththescaleofpayofRs5500
9000andthenextpostcarriedpayscaleofRs.
6500
10500andassuchrightlythesehadbeengrantedvideAnnexureA6andA7.Hence,even
ifanyintermediatecategoryhasbeencreatednow,thesamecannotbereckonedinrespectofthe
ACP benefits which had already been granted to the applicants. Again, the respondents cannot
changethedateofimplementationofACPschemeattheirownaccordandthesametooshallbe
w.e.f.9801999.Inanyevent,thereisnoquestionofrecoveryoftheallegedexcesspayment,in
viewofthedecisionoftheApexCourtinthecaseofShyamBabuVerma.Thecounselreliedupon
twojudgmentsoftheHon'bleDelhiHighCourtinthisregard.
16.Counselfortherespondentsarguedthattherecannotbeapositionwherebythenexthigher
grade to Rs 4000
6000 would be 5500
9000 and thereafter 6500
10500. The ACP benefits
grantedwerebymistakeandontheMinistry'sinformingNYKSthemistakehasbeensoughttobe
removed.Mistakes can always be corrected and there is no estoppal for the same. The counsel
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also referred to order dated 19th May 2008 of the Ministry of Youth Affairs and Sports, vide
AnnexureR3,para2ofwhichreadsasunder:
"2.ByissueoftheaboveordersNYKShasviolatedthespecificdirectionsofthisMinistryonthe
subjectandthegeneralordersissuedvidethisMinistry'sletterNo.F.14/97YSIdated14thMay,
1998,whereinithascategoricallybeenmentionedthatNehruYuvaKendraSangathanshallnot
alter/modifythetermsandconditionsofservice,emolumentsstructurei.e.,scalesofpayofposts
and service condition of its employees or create new posts without the prior approval of the
DepartmentofYouthAffairs&Sports&consultationwiththeMinistryofFinance.
3. The Ministry has viewed the matter seriously. You are, therefore, directed to cancel all the
orderswherebythebenefitofACPSchemehasbeengrantedtoACTswithretrospectiveeffectand
thefinancialbenefitsthathaveaccruedtotheemployeesberecoveredforthwith.Director(Fin.)
ofNYKSwillensure that the recovery from the employees has been made and shall submit the
report to the Ministry within one month. Simultaneously, CVO, NYKS will initiate suitable
disciplinaryproceedingsagainstthestaffandofficerswhohaveadvisedthecompetentauthorities
intheNYKSforissueoftheseorders.TheCVOalsosubmitareporttotheMinistrywithintwo
weeks.
4.AcompliancereportmaykindlybefurnishedtothisMinistrywithin3daysofreceiptofthis
letter."
17.Argumentswereheardanddocumentsperused.Thewrittensubmissionafterthearguments,
submitted by the counsel for the applicant has also been gone through. To a pointed question
whether any of the Accounts clerk cum typist has got his first promotion to the level of
AccountantorwhetheranyoftheaccountanthadbeenpromotedasJuniorAccountsofficer,the
counsel could not be in a position to reply much less with any documentary evidence. (This
situationiscertainlyunderstandableasthecounselwouldnothaveforeseensuchaclarification
beingsoughtatthetimeofhearing).However,hehasstatedthatsomeoftheaccountsclerkcum
typistsarepresentlyworkingasyouthcoordinator.
18. Though some of the applicants may be functioning as Youth Coordinators, it is not known
whetherthesameisapromotionalpost,withAccountsclerkcumtypistasthefeedercategory.A
look at the provisions of ACP scheme would be advantageous at this juncture. Para 7 of order
dated 9th August 1999 was referred to by the counsel for the applicant in this regard and the
sameisasunder:
"7.FinancialupgradationundertheSchemeshallbegiventothenexthighergradeinaccordance
with the existing hierarchy in a cadre/category of posts without creating new posts for the
purpose. However, in case of isolated posts, in the absence of defined hierarchical grades,
financial upgradation shall be given by the Ministries / Departments concerned in the
immediatelynexthigher(standard/common)payscalesasindicatedinAnnexureIIwhichisin
keepingwithPartAoftheFirstScheduleannexedtotheNotificationdatedSeptember30,1997
of the Ministry of Finance (Department of Expenditure). For instance, incumbents of isolated
posts in the pay scale S4, as indicated in AnnexureII will be eligible for the proposed two
financial upgradations only to the pay scales S5 and S6. Financial upgradation on a dynamic
basis(i.e.Withouthavingtocreatepostsintherelevantscalesofpay)hasbeenrecommendedby
theFifthCentralPayCommissiononlyfortheincumbentsofisolatedpostswhichhavenoavenue
of promotion at all. Since finance upgradations under the Scheme shall be personal to the
incumbent of the isolated post, the same shall be fitted at its original level (pay scale) when
vacated. Posts which are part of a welldefined cadre shall not qualify for the ACP Scheme on
'dynamic' basis. The ACP benefits in their case shall be granted conforming to the existing
hierarchicalstructureonly."
19.Wherethereisnohierarchy,i.e.forisolatedposts,ACPschemewouldbeapplicableinterms
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ofvariousscalesprescribedasS1,S2etc.,andabovethescaleofpayofRs4000
6000,thenext
scale is Rs 4,500
7000 and thereafter 5000
8000/. It has also been clarified that if
subsequentlyanyscaleorposthasbeenintroducedbetweentwoposts,theymaynothavetobe
reckoned with if the benefits under ACP applied to any individual prior to the introduction of
suchpost.Thesaidclarificationreadsasunder:
Sl.No.41.Pointofdoubt:Acadreconsistsof4grades"A','B','C'and'D'(inascendingorder).
Upon restructuring of a cadre, Grade 'B' is abolished from a date subsequent to 9.8.1999.
EmployeesrecruitedinGrade'A',whoareeligibleforfinancialupgradationonorafter9.8.1999
butbeforethedateofeffectofrestructuring,getfirst/secondfinancialupgradationinGrade'B'
and Grade 'C' respectively but those who become eligible for financial upgradation after the
restructuringhasbeeneffectedareentitledtofirstfinancialupgradationinGrade'C'andsecond
financial upgradation in Grade 'D'. This is anomalous. The cases of earlier set of employees
should be reviewed and they may be allowed financial upgradations as applicable to the latter
categoryofemployees.
ClarificationThebenefitofACPSchemeistobeallowedasperthehierarchyexisting,asonthe
date the employees become eligible for financial upgradation under ACPs. Cadres/hierarchical
structuresareneverstaticandarealwayssubjecttoreviewbasedonrecommendationsofPay
Commissions/Expert Committees or otherwise and it is not possible to review theentitlements
underACPsalreadyearnedeverytimeacadreisreviewed.ACPsisonlyatemporarysolutionto
provide relief to stagnating employees and the lasting solution for stagnation lies in review of
cadre structures, as regular promotions will be earned in such restructured grades. All the
employeeswillbenefitfromsuchcadrerestructuring.
20.Thereappearstohavebeenonlystagnationforsubstantialperiodinsofarastheapplicants
areconcerned.NorecruitmentruleshavebeenplacedbeforetheTribunaltoascertainastowhat
isthepromotionalpostforAccountsclerkcumTypistin2001orlater.Thoughithasbeenstated
thatjunior accountant has been approved in 2007 with retrospective effect from 1993, the fact
that none had been promoted though would have been eligible would only go to show that the
said rule had not been acted upon pending approval by the Ministry of Finance. Thus,
introductionoftheintermediatepostofJuniorAccountantinthescaleofRs4,500
7000willnot
beofanyconsequencesofarasthecaseoftheapplicantsisconcerned.Itisnotthecaseofeither
party that the post of youth coordinator which some of the applicants occupy now (who were
earlier working as Accounts clerk cum typist) is the promotional post. In all expectations, the
same would be a direct recruitment post. Thus, the situation from 1987 onwards was fluid in
state. Nothing seems to have concretized during the period when the scheme of ACP was
introduced.
21.Theapplicantshavechallengedthefollowing:
(a) The entire part of exhibit P5 order in TA, by which the earlier ACP benefits granted to the
applicantswerewithdrawn.
(b)Para2(e)ofAnnexureA10
(c)TheentirepartofAnnexureA15order.
22.Now,thefollowingtwoissueshavetobeaddressedwiththeabovesituation:
(a)WhatistheeffectivedateofimplementationofACPschemetotheapplicants.
(b)WhatshouldbethepaysscalesunderthefirstandsecondACPtotheapplicants.
(c)Whethertherehadbeenanyexcesspaymentmadetotheapplicants,andifso,whetherthey
couldberecovered.
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23. In so far as first question is concerned, many of the applicants were earlier serving in the
CentralGovernmentDepartmentsandtheircounterpartsweregiventhebenefitsofACPw.e.f.9
81999.Again,orderdated4thSeptember1996(AnnexureA1)inunequivocaltermsstatethat
thepreSangathanemployeeswill"drawtheirpayandallowancesfromtheSangathan.Theyshall
begovernedbytherulesandregulationsofGovt.ofIndiaasadmissiblefromtimetotime."As
such, there is no justification in prescribing a different date in so far as ACP benefits to the
employeesofSangathanisconcerned.Hence,itisheldthatthebenefitsundertheACPScheme
shallbeavailablefrom09081999.
24.InsofarasthepayscalesforfirstandsecondACPbenefits,respondentsshallundertakean
exercisewhetheranyoftheAccountsclerkscum typists werepromoted to any higher post(not
against any direct recruitment vacancy) from 1987 onwards and if such promotions have been
allowedtoanyormany,thesamecouldbetreatedasoneofpractice,intheabsence of regular
recruitmentrules.(SeeBimleshTanvarvsStateofHaryana,(2003)5SCC604)Inthatevent,the
payscalethatwasmadeavailabletothepromotedwouldbethefirstfinancialupgradationscale.
Instead,iftherehasbeennopromotionatall,andifthereisnothingtogotoshowthattherewas
aschemeofpromotionfromAccountsclerkcumtypist(whetheracteduponornot),thenthepost
of Accounts Clerk cum typist has to be treated as "isolated post" and the benefits given. This
wouldmeanthatbeyondRs4000
6000scale,thenextoneis4,500
7000/.However,sincethe
respondents themselves have granted 5,500
9000 as the next financial upgradation, vide
Annexure R3, notwithstanding the fact that in respect of isolated posts, the next higher grade
prescribedis5000
8000,respondentsshalladhereto5,500
9000.
25.Intheeventthattheabovesituationariseswherebythereisaninevitableneedtorevisethe
ACPgranted,whichwouldresultinexcessamounthavingbeenpaidtotheapplicants,insofaras
proposal to recover the excess amount is concerned, the same is impermissible in view of the
settledlawlaiddownbytheApexCourtinthefollowingcases:
(a)SahibRamv.StateofHaryana,1995Supp(1)SCC18:
"....it is not on account of any misrepresentation made by the appellant that the benefit of the
higherpayscalewasgiventohimbutbywrongconstructionmadebythePrincipalforwhichthe
appellant cannot be held to be at fault. Under the circumstances the amount paid till date may
notberecoveredfromtheappellant."
(b)BiharSEBv.BijayBhadur,(2000)10SCC99:
"WedorecordourconcurrencewiththeobservationsofthisCourtinSahibRamcaseandcome
to a conclusion that since payments have been made without any representation or a
misrepresentation, the appellant Board could not possibly be granted any liberty to deduct or
recovertheexcessamountpaidbywayofincrementsatanearlierpointoftime."
(c)Col.B.J.Akkara(Retd.)v.Govt.ofIndia,(2006)11SCC709:
"27.Thelastquestiontobeconsiderediswhetherreliefshouldbegrantedagainsttherecoveryof
theexcesspaymentsmadeonaccountofthewronginterpretation/understandingofthecircular
dated 761999. This Court has consistently granted relief against recovery of excess wrong
payment of emoluments/allowances from an employee, if the following conditions are fulfilled
(videSahibRamv.StateofHaryana,ShyamBabuVermav.UnionofIndia,UnionofIndiav.M.
BhaskarandV.Gangaramv.RegionalJt.Director):
(a)Theexcesspaymentwasnotmadeonaccountofanymisrepresentationorfraudonthepart
oftheemployee.
( b ) Such excess payment was made by the employer by applying a wrong principle for
calculatingthepay/allowanceoronthebasisofaparticularinterpretationofrule/order,whichis
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subsequentlyfoundtobeerroneous.
28.Suchrelief,restrainingbackrecoveryofexcesspayment,isgrantedbycourtsnotbecauseof
anyrightintheemployees,butinequity,inexerciseofjudicialdiscretiontorelievetheemployees
from the hardship that will be caused if recovery is implemented. A government servant,
particularlyoneinthelowerrungsofservicewouldspendwhateveremolumentshereceivesfor
theupkeepofhisfamily.Ifhereceivesanexcesspaymentforalongperiod,hewouldspendit,
genuinely believing that he is entitled to it. As any subsequent action to recover the excess
payment will cause undue hardship to him, relief is granted in that behalf. But where the
employee had knowledge that the payment received was in excess of what was due or wrongly
paid,orwheretheerrorisdetectedorcorrectedwithinashorttimeofwrongpayment,courtswill
notgrantreliefagainstrecovery.Thematterbeingintherealmofjudicialdiscretion,courtsmay
onthefactsandcircumstancesofanyparticularcaserefusetograntsuchreliefagainstrecovery."
(d)PurshottamLalDasv.StateofBihar,(2006)11SCC492:
"WedorecordourconcurrencewiththeobservationsofthisCourtinSahibRamcaseandcome
to a conclusion that since payments have been made without any representation or a
misrepresentation, the appellant Board could not possibly be granted any liberty to deduct or
recovertheexcessamountpaidbywayofincrementsatanearlierpointoftime.Theactoracts
onthepartoftheappellantBoardcannotunderanycircumstancesbesaidtobeinconsonance
withequity,goodconscienceandjustice."
26.Inviewoftheabove,theOA719/08andT.A.Nos.06/08and07/08aredisposedofwiththe
followingdirections:
(a) Respondents shall verify the records to see whether any of the Accounts clerk cum Typists
were earlier granted any promotion and if so, the pay scale attached thereto shall be the first
financialupgradation.IfthesameisRs5500
9000,thenthesecondfinancialupgradationwould
beRs6500
10500whichhadbeenmadeavailabletotheapplicantsinwhichevent,therewould
be no need to revise the ACP granted. Instead, if there is no such promotional post for which
Accounts clerk cum Typist is the feeder grade at the relevant point of time, then the post be
treatedasisolatedpostandtheschemeasavailableforthesameshouldbeextended,which,in
factseemstohavebeendirectedvidepara1oftheorderdated19thMay2008.Inthatevent,the
question of existence of condition at para 2(e) of Annexure A1 and validity of the order at
AnnexureA15donotarise.Again,intheeventoftheACPbeingrescheduledasforan isolated
post,saverevisionofpayscale,thereshallbenorecoveryatall.
27.Noorderastocosts.
(Dated,the11thAugust,2009.)
K.GEORGEJOSEPH
Dr.K.B.S.RAJAN
ADMINISTRATIVEMEMBER
JUDICIALMEMBER
rkr/cv
11/11

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